Iron Condor Pin Risk: A Naked Short at Expiration

Alternatives involve risks and are not appropriate for all financiers as the special dangers fundamental to alternatives trading might expose investors to potentially fast and significant losses. Please check out Qualities and Risks of Standardized before investing.

Choice traders typically trade vertical spreads– like those that make up iron condors– since they offer defined danger. However, if these positions aren't kept an eye on, it's possible to wind up with a naked brief alternative at expiration, creating a brand-new, and potentially unlimited, danger profile. Learn how and why this takes place, and what traders can do to handle that threat.

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: A Naked Short at Expiration

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